Depending on who you ask, renting can be seen as not being worth your time. If you are younger and your parents already have mortgage experience, then they will likely encourage you to become a First Time Buyer in Manchester. The modern era though see’s more people renting than ever before, so here we will take a look at the pros and cons of buying and renting.
The property market is unpredictable and always changing, so we never truly know if a sudden boom or plummet is going to occur. If you buy a property and it suddenly goes down in value, you can be left really disappointed. Over the years we have seen this happen to countless people, though history has shown that even when all seems lost, the value may eventually shoot back up. This is, of course, providing you can afford to keep the property.
Take a look back at the sold values during the Credit Crunch era. It was one of the worst economic times in our lives, yet less than a decade later we have a booming market and higher property values! You may also be in a position where you lose money if you, unfortunately, have to sell your home at the wrong time. This can be due to such things as a relationship breakdown or reduction in your income.
Before you commit to a property purchase, it is worth speaking with an experienced First Time Buyer Mortgage Advisor in Manchester as we will be able to look at ways to protect you from certain circumstances that may affect you, such as unexpected illness. That being said, this is not just an investment, this is your home. The most important thing here is finding something that fits your circumstances.
Generally speaking, mortgage payments will be cheaper than rent. This is not guaranteed, but it is more likely to be the case. Interest rates have been known to fluctuate which mean your mortgage payments vary depending on what the rates are like that month.
Most people, however, opt for a fixed-rate mortgage, as that will keep payments the same amount for the chosen length of your term, providing stability for both yourself and the lender. On the side of renting, your payments will either stay the same or go up as it is not often you will see a Landlord opting to make less money.
Some people feel that owning their home creates a sense of stability for them and their family. Assuming you can afford your mortgage payments, this means nobody can remove you from your home if you are not ready to leave. This is not quite the same for those who opt to be a tenant.
Whilst you do have some protection, if the landlord wants their property back you do not really have much choice. Sometimes you may find the landlord will give you first refusal (ability to buy the property before it goes to market) as a means of avoiding the hassle of an estate agent.
Renting can be a more flexible option than being a homeowner. An example of this would be if you found a job in a new area, there is nothing stopping you from handing in notice and leaving. Although it would be nice, it doesn’t quite work like that for homeowners. You need to figure out whether you want to sell or let the property out and either process can be expensive and time consuming.
If you are the sort to move frequently or are not sure how long you will be around the area, buying may not be the option for you. Home buying requires long term stability, it is more an investment than anything.
A landlord is responsible for any repairs needed on the property the tenant is renting. When it comes to these repairs, some landlords are better than others, however, so be prepared to fix some minor repairs yourself. Homeowners are completely responsible for their own repairs and usually the conditions of a mortgage will require the property to be insured.
Despite some people strongly advocating for it, owning your own home does not fit into everyone’s plans. If you are a young couple, there’s no shame in renting together to see how you’d fare being around each other all the time. Things might not always work out how we would like them to and the removal process from a mortgage can be quite the challenge.
Home buying is a massive commitment and definitely not something to rush into, however if you are renting a property you may find saving up a deposit harder. In the end, most people decide to buy over renting, though it is entirely dependent on the individual. Mortgage payments benefit you solely, whereas renting puts money in the pockets of someone else. As such, most would rather do something for themselves. Timing is key, so always make sure you’re in a solid place financially before you decide to buy over renting.